Wal-Mart sees Q3 profit at high end

CHICAGO (CBS.MW) -- Wal-Mart Stores Inc. confirmed Thursday that October's sales results were at the low end of expectations, but said third-quarter earnings are coming in ahead of forecasts, thanks to a tax rate change.

Shares of Wal-Mart
WMT, -2.75%
the world's largest retailer, ended the session at $56.26, up $1.78, or 3.2 percent.

The Bentonville, Ark.-based company said that though total sales came in below expectations, gross margins were stronger and a change in its tax rate fueled earnings at the "high end" of its per-share forecast range of 52 cents to 54 cents. That would indicate a profit of 54 cents a share, according to Wal-Mart's past practices.

For October, Wal-Mart said total sales climbed 10.4 percent to $21.04 billion from $19.06 billion a year ago. For the quarter, sales rose 11.4 percent to $203.04 billion from $182.31 billion a year ago.

Sales at stores open longer than a year -- a key retail industry benchmark -- increased 2.8 percent, toward the lower end of an earlier forecast of 2 percent to 4 percent. Analysts polled by Thomson First Call had been expecting same-store sales to rise 3 percent.

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